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R
Rasi193
September 7, 2022
Question

Private Loan (UK business)

  • September 7, 2022
  • 1 reply
  • 0 views

I have several times during the year transferred money into the business to support it in its early days. These are from my private funds and I wonder how this should be recorded in Quickbooks? The system thinks it's revenue, but it's not... Please advice.

1 reply

J
JonpriL
September 7, 2022

Hi there, @Rasi193.

 

I'm here to help ensure you're able to enter a private loan correctly in QuickBooks Online.

 

You're right, a loan when recorded in QuickBooks is not considered revenue. Let's create a new equity account to record your loan from private funds.

 

  1. Go to Accounting.
  2. Select Chart of Accounts.
  3. Click New.
  4. Under Account Type, select Owner's Equity.
  5. Below the Detail Type menu, choose Owner's Equity.
  6. Click Save and Close.

 

Once done, enter a deposit using your new account to record the amount of your loan. Kindly read and use this article to learn more: Record an Owner's Contribution or Capital Investment in a Business.

 

Now that you've entered the amount of loan taken from a private fund, here's an article you can use when it is time to pay your loan: How to Record Paying back a Capital Investment in QuickBooks Online?.

 

I'm also adding this reference that'll help you understand your account and its transaction history which breaks down how much money you have or owe: The Chart of Accounts in QuickBooks.

 

I've got you covered if you have other questions aside from recording a loan in QuickBooks. Use the Reply option below to leave a comment and don't forget to include my name, @JonpriL. Take care always and stay safe!

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